Bellicum Pharmaceuticals Q1 Miss Doesn't Matter, As Long As Pipeline Remains On Track

Quarterly earnings reports matter a lot more for some companies than others. According to Wall Street analysts, investors should look beyond Bellicum Pharmaceuticals Inc (NASDAQ: BLCM)’s first-quarter earnings miss and focus on its drug pipeline, which includes leading cancer treatment candidate BPX-501.

Jefferies' Analysis

For Jefferies analyst Biren Amin, the biggest takeaway from Bellicum’s earnings report was that the pipeline is on-track.

“BLCM continues discussions with [the] FDA to determine U.S. regulatory pathway for BPX-501,” Amin noted in a new report.

“BLCM also maintained that BP-004 is on track with enrollment, which will drive potential filing in EU in mid-2018.”

Amin expects an update on BPX-501 by mid-2017.

Cantor Fitzgerald's Take

Cantor Fitzgerald analyst Elemer Piros expects that update to come at the European Hematology Association meeting in June.

In addition, Piros is looking for protocol for pivotal trials of BPX-501 in the U.S. to be finalized by the end of 2017. Cantor expects Bellicum’s reported cash balance of $165 million to be plenty to get the company through the end of 2018.

Piros believes Bellicum’s modified T-cell cancer treatments could eventually open the door for blood stem cell transplantation for more than 13,000 U.S. patients.

Both Cantor Fitzgerald and Jefferies remain bullish on Belicum’s shares. Jefferies maintains a Buy rating and has lowered its price target from $19 to $18. Cantor Fitzgerald is even more optimistic, maintaining an Overweight rating and a $32 price target.